The Bank charges annual interest rates (as shown below) according to the reducing monthly balance.
In the monthly reducing cycle, the principal is reduced with every EMI and the interest is calculated on the outstanding balance.

While not wanting to sacrifice fun features that could encourage training, I did not want to pay the extreme price as seen on other seats like Fisher Price, which had a flushing noise I felt was important. Not only is there a handle with a flushing sound, but you can actually record your very own encouraging message to your child that is played after the flushing noise.